Sears Hometown reports preliminary Q4 net income drop

Hoffman Estates, Ill. – Sears Hometown and Outlet Stores Inc. reported preliminary declines in net income, net sales and same-store sales for the fourth quarter of fiscal 2013. Compared to the same quarter a year earlier, Sears Hometown reported net income of $3.72 million, down 61% from $9.66 million.

Preliminary net sales for the quarter decreased 4.5% to $602.5 million from $631.2 million. Preliminary same-store sales dropped 3.4%. Sears Hometown cited the extra week in the fourth quarter of fiscal 2012, as well as lower sales in several categories including consumer electronics, tools and apparel, for these results.

“Fourth quarter results were disappointing, especially in the Hometown and Hardware segment, where holiday sales and margins of our important Kenmore appliances and Craftsman tools significantly underperformed management's expectations,” said Bruce Johnson, president and CEO. “In the Outlet segment, increased holiday promotional spending did not drive the expected sales increases. Total company January sales were negatively impacted by the unusually severe winter weather in many of our trade areas.”

Preliminary results for the full fiscal year show net income declining 41% to $35.55 million from $60.08 million, and net sales dropping 1.3% to $2.4 billion from $2.43 billion. Same-store sales decreased 2.2%.